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financial instruments in the form of loans, equity and guarantees, instead of traditional
grants.
In the context of the Investment Plan, the ambition is to at least double the use of
innovative financial instruments in the European Structural and Investment Funds from
2014 to 2020. The increased use of innovative financial instruments, rather than grants,
should create additional impact of every euro mobilised.
By doubling the amount of innovative instruments and using the multiplier effect, at least
€20 billion in terms of additional investments in the real economy could be mobilised
between 2015 and 2017.
Member States and regions can also raise the multiplier effect of EU funds by increasing
national co-financing beyond the minimum legal requirement. Member States are invited to
use EU funds still available under the 2007 to 2013 programming period to their best effect
and ensure that they are fully used in support of this Investment Plan.
36. Isn't there an overlap between the EFSI and the European Structural and
Investment Funds (ESIF)?
No. They have different purposes and are implemented with different financial instruments.
While the EFSI focuses on attracting private investors in economically viable projects, the
bulk of the European Structural and Investment Funds (ESIF) consists of grants while
Member States are encouraged to at least double the use of innovative financial
instruments in the future.
To take a fictitious example: building a road with a toll in an industrial centre might attract
investors and could thus be more easily funded through the EFSI. But building a road
without toll in a rural area will probably not attract private investors and is therefore better
funded through the European Structural and Investment Funds (ESIF).
37. Would it be possible for Member States to contribute to the EFSI from
structural funds and their national contribution (co-financing)?
Member States will be able to use European Structural and Investment Funds (ESIF) to co-
finance projects at project level. The use of structural funds to pay in capital at the EFSI level
is not possible, since the EFSI would not meet the eligibility criteria for use of ESIF.
38. What options could exist for these contributions in the form of cash and
guarantees?
Member States can contribute via their general government or via their National
Promotional Banks.
17
grants.
In the context of the Investment Plan, the ambition is to at least double the use of
innovative financial instruments in the European Structural and Investment Funds from
2014 to 2020. The increased use of innovative financial instruments, rather than grants,
should create additional impact of every euro mobilised.
By doubling the amount of innovative instruments and using the multiplier effect, at least
€20 billion in terms of additional investments in the real economy could be mobilised
between 2015 and 2017.
Member States and regions can also raise the multiplier effect of EU funds by increasing
national co-financing beyond the minimum legal requirement. Member States are invited to
use EU funds still available under the 2007 to 2013 programming period to their best effect
and ensure that they are fully used in support of this Investment Plan.
36. Isn't there an overlap between the EFSI and the European Structural and
Investment Funds (ESIF)?
No. They have different purposes and are implemented with different financial instruments.
While the EFSI focuses on attracting private investors in economically viable projects, the
bulk of the European Structural and Investment Funds (ESIF) consists of grants while
Member States are encouraged to at least double the use of innovative financial
instruments in the future.
To take a fictitious example: building a road with a toll in an industrial centre might attract
investors and could thus be more easily funded through the EFSI. But building a road
without toll in a rural area will probably not attract private investors and is therefore better
funded through the European Structural and Investment Funds (ESIF).
37. Would it be possible for Member States to contribute to the EFSI from
structural funds and their national contribution (co-financing)?
Member States will be able to use European Structural and Investment Funds (ESIF) to co-
finance projects at project level. The use of structural funds to pay in capital at the EFSI level
is not possible, since the EFSI would not meet the eligibility criteria for use of ESIF.
38. What options could exist for these contributions in the form of cash and
guarantees?
Member States can contribute via their general government or via their National
Promotional Banks.
17
